Contents

1. Introduction

2. Logistics Challenges for South Africa

Krish Reddy

3. Overview of Freight Network

4. Integrated Demand Forecast

5. Planning Principles

6. Infrastructure Development Plans

Ports

Rail

Dave Stromberg

Francois Meyer

Pipelines

7. Transnet 5 year Capital Plan

a co s eye

Noel Cronje

Krish Reddy

Slide 143July 2009

7. Transnet 5 year Capital Plan

8. Conclusions and Recommendations

Krish Reddy

7. Transnet 5 year Capital Plan

SALIENT FEATURES OF FIVE YEAR CAPITAL INVESTMENT PLAN

• 5 year capital investment plan approved in 2008/09 Corporate Plan = R80.3bn

• Latest 5-Year Investment Plan amounts to R80.5bn.

• Projects have been reviewed and re-prioritised - rescheduling of cash flows over 5

years

• Transnet remains committed to the R80bn capital plan and have not downscaled

spending

• Of the planned Capital Investment of R80 5bn spending will be as follows:• Of the planned Capital Investment of R80.5bn spending will be as follows:

• 32% in rolling stock (R25.8bn)

• 59% in Infrastructure related projects (R47 5bn)• 59% in Infrastructure related projects (R47.5bn)

• 9% in Acquisition of machinery & equipment and floating craft (R7.2bn)

• The capital expenditure over the next three years of R57.7bn will be funded by

Slide 144July 2009

The capital expenditure over the next three years of R57.7bn will be funded by

borrowings of R28.4bn and cash from operations of R29.3bn

Source : Transnet Corporate Plan

7. Transnet 5 year Capital Plan

Sustaining vs Expansion (3yrs) Capex per Division

SALIENT FEATURES OF FIVE YEAR CAPITAL INVESTMENT PLAN

Sustaining vs Expansion (3yrs)

42% TFRTPL

OtherR1.2bn

Capex per Division

58%42%

Sustaining

Expansion TFRR43.5bn

TPT14%

TPLR11.1bn

1%

21,912

Annual Capex (Rbn) 54%

20%

8%TPTR6.3bn

9,0718,121

7 18013,331

21,912

19,442

16,336

3%

TRE

TNPAR16.3bn

7,180

9,439

7,718

9,480

12,841 11,3219,156

TRER2.1bn

Slide 145July 2009 Source : Transnet Corporate Plan

11/12

3,892

12/13

1,762

13/1409/10 10/11

,

7. Transnet 5 year Capital PlanCapex: Major Projects Included In Five Year Plan (1/2)

Cumulative 5 year (Rbn) InfrastructureThe image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again.

RailRbn 16,8

• Ore Line capacity expansions up to 60mtpa (R5.2bn)

• Infra COPEX on the Ore Line (R1.1bn)

• Coal line capacity expansion (R2.5bn)

• Infra COPEX for General Freight (R6.1bn)

The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again.

g ( )

PortsRbn 18,0

• Ngqura Construction and Container Terminal (R3.2bn)

• Cape Town container expansion (R2.7bn)

• Ore Expansion (R1.0bn)

• DCT Reengineering (R0.7bn)

The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again.

• Richards Bay Dry Bulk Terminal (R0.9bn)

NMPP

PipelinesRbn

11.4

• Pipelines updated its estimate on the NMPP which is expected to be completed within the timelines stipulated in the licence agreement issued by NERSA. R9.6bn will be spent on the NMPP over the next 4 years.

Slide 146July 2009 Source: Transnet Corporate Plan

32

7. Transnet 5 year Capital PlanCAPEX: MAJOR PROJECTS INCLUDED IN FIVE YEAR PLAN (2/2)

Cumulative 5 year (Rbn) Rolling stock and Port Equipment

• 110 dual voltage locomotives for Coal Line (R2.8bn)

• Acquisition of 100 locomotives for GFB (R2.3bn)

• Upgrade of 150 model 6E1 locomotives (R0 8bn)

Cumulative 5 year (Rbn) Rolling stock and Port Equipment

• Upgrade of 150 model 6E1 locomotives (R0.8bn)

• Upgrade of 150 model GM and GE locomotives (R0.8bn)

• Wagons for coal line expansion (R0.6bn)

• Wagon fleet renewal and modernisation (R2.1bn)

Rolling Stock-(Locomotives

25,8

• New wagons for General Freight growth (R0.6bn)

• Ore Line including maintenance capitalisation (R3.7bn)

• Coal Line rolling stock maintenance capitalisation (R2.0bn)

• General Freight rolling stock COPEX (R7.0bn)

(Locomotives and wagons)Rbn

g g ( )

Port EquipmentRbn

5,2

Slide 147July 2009

33

Source : Transnet Corporate Plan

7. Transnet 5 year Capital PlanCapital Expenditure: Major Projects To Create Capacity

Project 5-year Spend ETC Additional Capacity

Durban Pier 1 R285m R2.0bn 720000 TEUs pa

Durban Container Terminal Re-engineering R708m R1.5bn 1 000000 TEUs pa

Iron-Ore Line R7.5bn R11.6bn Up to 60 Mtpa

Manganese Refurbishment R424m R0.9bn 4.2 Mtpa

Cape Town Container Terminal Expansion R3.8bn R4.1bn 800000 TEUs pa

Ngqura Container Terminal R3.8bn R7.9bn 800000 TEUs pa

NMPP (Phase 1) R12,6bn R12,6bn 8,5 blpa

TEU = Twenty-foot Equivalent Unit

Slide 148July 2009 Source: Transnet Corporate Plan

TEU Twenty foot Equivalent Unit

Mtpa = Mega (million) tonnes per annum

Blpa = billion litres per annum